Toronto stocks set to ease on last day of year

TORONTO Dec 31 (Reuters) - The Toronto Stock Exchange's
main index was set for a quiet day to finish the year on
Monday, as easing commodity prices could spur profit-taking.

Rising gold prices led a resource-based rally in the
previous session, but spot bullion dipped by nearly $2 an ounce
early on Monday morning.

Base metals were flat while natural gas -- a key indicator
for the TSX -- eased.

The S&P/TSX composite index .GSPTSE starts the day at
13,821.34, up about 7 percent so far in 2007. Canada's
benchmark stock index rose by 14.5 percent in 2006, and by more
than 22 percent in 2005.

"It's certainly a trend downward ... and on balance, the
consensus is for a slow first half (of 2008) and a pick-up in
the second half," said John Kinsey, portfolio manager at
Caldwell Securities Ltd in Toronto.

He suggested thin trading on Monday could see mutual funds
doing some "window dressing," where recently weak stocks are
sold and recently strong stocks are bought to close out the
year.

"I don't know that today will tell us much of anything,"
Kinsey said.

A U.S. report on November home sales, due at 10 a.m. (1500
GMT) could give the Canadian market direction. U.S. stock
futures pointed to a firm open.